12.06.24
How profitable is the business of fragrance ingredients? A new report by Markets and Markets says the fragrance ingredients market will be worth nearly $22 billion by 2029.
By more specific numbers, the fragrance ingredients market is now worth an estimated $17.1 billion—and will rise at a CAGR of 5.1% to reach $21.9 billion by 2029, the report states.
What factors are fueling growth?
There is a rising interest in "clean" labels and ingredients. More fragrance brands are focusing on transparency. There is also a decline in the use of synthetic additives, and a growing use of essential oils.Markets and Markets notes that a growing number of companies acquiring luxury fragrance brands. Plus, many fragrance manufacturers are focusing on high-end lines and introducing new scents that deliver "a sense of novelty and attract diverse demographic groups," the press release states.
And according to Givaudan, fragrance plays a role in the growing wellness trend—and 74% of consumers associate well-being with mental and emotional health.
The Markets and Markets report says that fragrance in personal care products is playing a significant role in driving market growth—especially in especially in the deodorant and skin care segments.
Unilever's Lynx, a mens' deodorant and body wash line, brand is one example the report highlights. The brand launched its Fine Fragrance Collection in January 2024, and its five high-end scents are designed specifically for Gen Z males, Marketing Week reports,
Fragrances in products such as shampoo or body wash, for example, are typically essential oils or aroma compounds, and play a role in enhancing the user's experience and inspiring brand loyalty.
View more about the Fragrance Ingredinets Market report at Markets and Markets.
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